Hayekians would argue that both the Japanese lost decade and the recent US housing crash were both caused by massive mis-allocations of capital driven by a variety of government interventions and corrupted price signals (particularly on interest rates). This may be an early signal of a lulu of a bust coming to China, in an story on the high speed rail system in China

With the latest revelations, the shining new emblem of China’s modernization looks more like an example of many of the country’s interlinking problems: top-level corruption, concerns about construction quality and a lack of public input into the planning of large-scale projects.

Questions have also arisen about whether costs and public needs are too often overlooked as the leadership pursues grandiose projects, which some critics say are for vanity or to engender national pride but which are also seen as an effort to pump up growth through massive public works spending.

The Finance Ministry said last week that the Railways Ministry continued to lose money in the first quarter of this year. The ministry’s debt stands at $276 billion, almost all borrowed from Chinese banks.

“They’ve taken on a massive amount of debt to build it,” said Patrick Chovanec, who teaches at Tsinghua University. He said China accelerated construction of the high-speed rail network — including 295 sleek glass-and-marble train stations — as part of the country’s stimulus spending in response to the 2008 global financial crisis.

Zhao Jian, a professor at Beijing Jiaotong University and a longtime critic of high-speed rail, said he worries that the cost of the project might have created a hidden debt bomb that threatens China’s banking system.

“In China, we will have a debt crisis — a high-speed rail debt crisis,” he said. “I think it is more serious than your subprime mortgage crisis. You can always leave a house or use it. The rail system is there. It’s a burden. You must operate the rail system, and when you operate it, the cost is very high.”

It should be noted that this is the system that has been lauded by folks from Thomas Friedman to Barack Obama as something we should emulate in the US. By the way, this problem identified in China is in fact endemic to the US -- the cost overruns in every rail system. In the US, this probably has less to do with outright individual corruption (i.e. the stealing of money for personal gain) but more common political corruption, in the form of purposefully underestimating costs to get public approval, knowing that when inevitable overruns appear, it will be too late to stop the project.

Part of the cost problem has been that each segment of the system has been far more expensive to build than initially estimated, which many trace directly to the alleged corruption being uncovered, including a flawed bidding process.

I wrote earlier on high speed rail as triumphalism rather than real investment here. Why the US actually has the best rail network in the world is here (hint: from an energy, pollution, and congestion standpoint, the best thing to put on rails is freight rather than passengers, and the US does that better than China or Europe, by far)

Thank god English is generally defined bottom-up rather than top down, a mirror of the liberal capitalist society both we and England used to have. The alternative is absurd:

The word on the table that morning was "cloud computing."To translate the English term for computing resources that can be accessed on demand on the Internet, a group of French experts had spent 18 months coming up with "informatique en nuage," which literally means "computing in cloud."

France's General Commission of Terminology and Neology -- a 17-member group of professors, linguists, scientists and a former ambassador -- was gathered in a building overlooking the Louvre to approve the term.

"What? This means nothing to me. I put a 'cloud' of milk in my tea!" exclaimed Jean Saint-Geours, a French writer and member of the Terminology Commission.

"Send it back and start again," ordered Etienne Guyon, a physics professor on the commission....

Before a word such as "cloud computing" or "podcasting" ("diffusion pour baladeur") receives a certified French equivalent, it needs to be approved by three organizations and get a government minister's seal of approval, according to rules laid out by the state's General Delegation for the French Language and the Languages of France. The process can be a linguistic odyssey taking years.

"Rigor cannot be compromised," said Xavier North, the 57-year-old civil servant who heads the General Delegation.

In particular, its heartening that the French have a finely-tuned understanding of their rights. They have no hard and fast right to free speech as we have in the US, but

Article Two of France's Constitution states that, "The language of the Republic shall be French." The French government, therefore, has a duty to offer citizens French alternatives to English words, he says. "Our citizens have a right to communicate without speaking English."

I discussed this same topic earlier. This makes for another excellent reason to oppose laws mandating English as our official language, promulgated by folks who are outraged at having to press 1 for English -- it can't be a good idea if the French do it.

I found this incredible:

Each of France's government ministries has at least one terminology committee attached to it. The job of the people on the committee is to spot new English words and create and define French alternatives before the English version catches on. Ms. Madinier called on the committee in charge of computing terminology -- which is part of the French Finance Ministry -- to handle the expression "cloud computing."

I would have thought that the influx of so many new concepts and technologies in English might have been a clue that maybe France needed to do something about innovation; but no, apparently it will be fine to gravy train off American and English innovation as long as they can come up with a French name for everything. The only other country I know of that was so fixated on making Anglo-American innovation look homemade was the Soviet Union.